30 March 2013
Sir we are a propitiatory concern registered under Karnataka VAT as a retail dealer in Garments.Recently we have brought some fabric from a supplier in Maharashtra and got the fabric processed in Karnataka by a job worker. The Job worker bills me Job work Charges. Now is there a violation of VAT rules. Should we be registered as a Manufacturer?. we are not direct Manufacturer but indirect manufacturer or Principal manufacturer. Should i show the fabric purchased in VAT returns?.
30 March 2013
You shall be required to disclose your fabrics purchases from Maharastra and since the same is being processed you may be treated as manufacturer.